Rock Island daily Argus. (Rock Island, Ill.) 1886-1893, 1887-01-19
THE NATIONS BUSINESS.
ITS CONSIDERATION BY THE WISDOM
GATHERED AT THE CAPITAL.

Retaliation Proposed Against Our British
American Neighbors-Crdering an In
vestigation of Pacific halfway Methods
A Bill to Choke on Foreign Discrim-
ination Against Our Products.
WASHINGTON CITY, Jan. t9.-Secre-
tary Manning has sent to the senate
4 reply 10 the senate's inquiry about
the indebtedness of tine Pacific railways,
in which he says that ''the amount due
from the several Pacific Railway com
panies fer interest paid by the United States
to Jan. !, 1oe7, on subsidy bonds issued TO
the said companies was $40, S54, 525. h2, of
which there had been repaid by the COM
panies at that date the sum S2l $50, IA. II,
leaving on account of interest the sum of 49,,
S0g, lS1.de. There viii be due the same
account at maturity of the subsidy bonds
Sept. II, 1897, the further sum of S43, 406,
92l.eS, makinii a total of S92, T09,-
1886 due and TO become due on account
of interest. There is also to become dne on
account of principal of these bonds at ma
turiuy the sum of SGi 81 ,5l2 making an ag-
gregate indebtedness due and TO become due
of sl57, 49,, $685..
In regard to the inquiry as to what differ
ence will result to the treasury if the senate
bill No. ], 90 should become a law, ii may be
stated that the semi-annual payment pro-
videi for is insufficient 10 cancel even the
interest, being sufficient to provide for the
payment of only eleven-twelfths of the in
terest. The semi-annual interest on the pres
ent worth of tine debt-Sli0, 97S, 100 2S-com-
puted at per cent per annum, is 81 ,664, 67L 50,
while the constant semi annual payment re-
quired TO be made under the provisions of
tbs bill is 81, 525, 9iS IS The constant semi
annual payment required to cancel the in
debtedness above mentioned 0,973, 100 2S
principal and interest in eighty years COM
puted at the rate of 3 per cent per annum
reinvested semi-annually, is 81 ,s4, 063PS.n
The secretary adds that in view of the fact
that the Thurman act provides that the sink
ing fund provided for therein shall be held
for the benefit of first mortgage holders, it
may be proper to consider whether the sink
ing fund should be treated as an offset in de-
termining the amount hue the government.
The resolution passed by the house Tues
day providing for an investigation Of the
books of the subsidized Pacific railways au-
thorizes the secretary of the interior to ap-
point three persons at n compensation of not
more than 5000 per annum each and tray-
cling expenses, and stenogapher if neces-
sary, to examine into the working and finan-
cial management of the Pacific railroads
that have received aid from the government
in bonds or land; to ascertain whether they
have observed all the Obligations imposed
upon them by the laws governing such aid;
and whether their books and accounts have
been kept to show The net earning, not re-
duced by constructive mileage on branch
roads or diverted to any wrongful or i'm
proper purpose or if so reduced how much
and whether there Is discrimination of rates
in favor Of unaided against aided roads; and
if any money Is due the United States on &C
count of erroneous accounts; or if the pro
ceeds of any trust fund loan, have been di-
vertei from their lawful use The persons
appointed shall have all powers necessary to
the Investigation, AMI are under the control
of the secretary of the interior.